Smart Beta: Momentum ETFs

In the sixth in our series explaining the different styles investors can add to their portfolios through strategic beta ETFs, Hortense Bioy talks momentum investing

Hortense Bioy, CFA 20 December, 2017 | 8:11AM

 

Hortense Bioy: Momentum is one of the best-known factors in investing. Momentum investing is about buying winning stocks, stocks that have done well in the recent past, and selling losing stocks, stocks that have done poorly. Academic research shows that stocks that have recently risen or fallen in price will continue that trend over the short-to-medium term, typically over six to 12 months. And over the long term, high-momentum stocks will outperform the market.

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About Author

Hortense Bioy, CFA

Hortense Bioy, CFA  is director of passive funds and sustainability research in Europe for Morningstar

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